Editing Privatization (section)

=== Secured borrowing ===
Some privatization transactions can be interpreted as a form of a [[secured loan]]<ref name="roin">{{Cite journal |last=Roin |first=Julie |title=Privatization and the Sale of Tax Revenues |ssrn=1880033 |date=2011-07-06 }}</ref><ref>[https://www.chicagotribune.com/2011/07/22/u-of-c-professor-argues-privatization-of-public-assets-just-like-borrowing-money/ U. of C. professor argues privatization of public assets just like borrowing money], July 22, 2011, ''Chicago Tribune,'' Ameet Sachdev's Chicago Law, Ameet Sachdev</ref> and are criticized as a "particularly noxious form of governmental debt".<ref name="roin" /> In this interpretation, the upfront payment from the privatization sale corresponds to the [[debt|principal amount]] of the loan, while the proceeds from the underlying asset correspond to secured interest payments—the transaction can be considered substantively the same as a secured loan, though it is structured as a sale.<ref name="roin" /> This interpretation is particularly argued to apply to recent municipal transactions in the United States, particularly for fixed term, such as the 2008 sale of the proceeds from [[Chicago Parking Meters|Chicago parking meters]] for 75 years. It is argued that this is motivated by "politicians' desires to borrow money surreptitiously",<ref name="roin" /> due to legal restrictions on and political resistance to alternative sources of revenue, viz, raising taxes or issuing debt.